Q. How do you make a charitable donation with your required minimum distribution (RMD) from a 403b?
A. For the best tax result, the participant in the 403(b) should, if possible, rollover over to an IRA before their required beginning date. A qualified charitable distribution (QCD) can only be made from an IRA. This is limited to $100,000 per year, and is treated as a nontaxable distribution and given directly to the charity; it is also treated as their RMD for the year.
Under a 403(b) or a QP, the participant takes their RMD, pays taxes on the taxable portion, and gives a portion or all to a charity. If they itemize, they can take a deduction for the charitable donation.
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